Pfizer Wins As CEO Said To Meet Activist Starboard By Investing.com

Investing.com — Pfizer Inc. (NYSE: ) shares rose more than 3 percent on Wednesday after reports that CEO Albert Bourla was scheduled to meet with executives from activist hedge fund Starboard Value next week.

The news reported by the Financial Times comes after a recent report from Reuters which said that Starboard has taken a stake of about $1 billion in the pharmaceutical giant and is pushing for changes aimed at revitalizing the company’s performance.

According to the Financial Times, the meeting, which includes Pfizer’s lead independent director Shantanu Narayen, who is also CEO of Adobe Systems (NASDAQ: health.

The talks are said to signal an effort to address concerns raised by Starboard about Pfizer’s recent struggles to regain momentum after its pandemic highs.

Since taking over in 2019, Bourla has faced challenges as Pfizer’s revenue has declined, particularly due to a drop in sales of COVID-19 products.

Despite spending about $70 billion on acquisitions since 2020, including the notable $43 billion purchase of Seagen, Pfizer has yet to find a product that can effectively offset lost vaccine and pill revenue. treatment against COVID.

Pfizer’s recent product launches were also reported to have fallen short of expectations, including a weaker-than-expected launch of its respiratory syncytial virus (RSV) vaccine and disappointing clinical data from an ongoing obesity pill of development.

While the specifics of Starboard’s recommendations remain unclear, their involvement suggests an impetus for strategic change at Pfizer.

In a recent note to clients, Truist updated its models for Pfizer ahead of the earnings release, adjusting earnings primarily based on script tracking data and the season with Pfizer’s vaccine portfolio.

“We now model 3Q24E total revenue of $15.0 billion vs. $16.2 billion previously and 3Q24 adjustment. EPS of $0.48 vs $0.50 previously,” the firm said